NHS 10 Year Plan Chapter Two: Elective Care, Tariffs and the New Productivity Challenge

• Richard Tuson
• /
• 17 Jul 2025

NHS 10-Year Plan – What It Means for Surgery, Theatres and MedTech

The NHS 10-Year Plan introduces a fundamental shift in how elective care is structured, funded and measured. Behind the headline of delivering “more for less” lies a deeper transformation in payment models, productivity expectations and provider accountability.

This has big implications for MedTech, surgical technologies, and digital solutions designed to support perioperative care and recovery.

Year-of-Care Payments Replace Activity-Based Tariffs

The most significant change is the move away from episodic, activity-based payments. Instead, providers will receive a single “year-of-care” tariff to manage a patient’s elective treatment pathway—including surgery, follow-up and post-op care.

This aligns payment with outcomes and efficiency, not volume.

For MedTech, this means demonstrating value across the whole pathway:

• Technologies that reduce complications or re-admissions
• Tools that enable earlier discharge or remote follow-up
• Solutions that support surgical hubs and streamlined scheduling

All will now be more strategically relevant.

More Productivity, Same Capacity

There is no new capital funding for theatres or infrastructure. Providers are expected to deliver higher activity levels within existing estates and workforce constraints.

Surgical hubs, regional pooling of lists, and lean operating models will become essential. Theatres will be expected to operate more hours per week, with fewer cancellations, tighter case-mix control, and more use of digital scheduling and anaesthetic triage tools.

Patient-facing innovation will also play a role—supporting informed consent, reducing DNAs, and improving pathway navigation.

“Patient Power Payments” – A Radical Incentive

The plan includes proposals to trial “patient power payments”, where individuals can influence whether their provider receives full reimbursement after treatment.

This introduces a layer of accountability based on experience and satisfaction, potentially weighted by outcome data. The details are not yet finalised, but it reinforces the need for high-performing, patient-centred pathways.

MedTech supporting patient-reported outcomes, real-time feedback, or recovery tracking may gain strategic importance.

What’s Missing

Despite the bold language, there are gaps:

• No new capital for elective estates or surgical robotics
• No specific innovation scaling programme linked to surgical productivity
• Little clarity on how trusts will be supported to operationalise the new tariff model

Without implementation support, there is a risk that only the best-resourced systems will be able to realise the benefits.

Our Take

This is an important chapter for MedTech. The new funding model incentivises full-pathway value, not just isolated clinical moments. For surgical innovation, digital tools, and recovery support solutions, this could be a turning point.

But success will depend on execution—especially workforce capability, data systems, and operational support. This will reward technologies that integrate cleanly and deliver measurable gains in recovery, flow, and patient satisfaction.

At Health Analytical Solutions, we’ll continue tracking how this develops and what it means for providers, technology developers, and investors.

Read the full NHS plan

Fit for the Future: 10-Year Strategic Vision for the NHS (GOV.UK)

This is Chapter Two of our explainer series
More to follow as elective implementation, virtual care, and financial reform details emerge.

If you have a technology aligned with the priorities of the NHS 10-Year Plan, now is the time to act. We can help you navigate the evolving access landscape, shape your value story, and prepare for the next steps in your journey towards NHS adoption.

Get in touch: enquiry@healthanalyticalsolutions.co.uk or visit https://www.healthanalyticalsolutions.co.uk/services to explore how we can support you.